TMI Blog2011 (1) TMI 1037X X X X Extracts X X X X X X X X Extracts X X X X ..... here had been failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment and as such, no proceedings could have been initiated under section 148 after the expiry of a period of four years from the end of the relevant assessment year, assessment barred by limitation, assumption of jurisdiction by the Assessing Officer itself is invalid, petition succeeds and is accordingly allowed. - 1988 of 2001 - - - Dated:- 11-1-2011 - HARSHA DEVANI MS., ANTANI H. B. JJ. JUDGMENT Ms. Harsha Devani J.- 1. In this petition under article 226 of the Constitution of India, the petitioner has challenged the notice dated January 12, 2001, issued under section 148 of the Income-tax Act, 1961 ("t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection (1) of section 142 or section 148 ; or (iii)to disclose fully and truly all material facts necessary for its assessment for that assessment year. That admittedly, the first and second situations are not present in this case. It is the case of the petitioner that in the facts and circumstances of the present case, it cannot be alleged that there is any failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment for the assessment year in question and as such even the third situation is not satisfied. The impugned notice is, therefore, without jurisdiction. 4. In response to the petition, the respondent has filed an affidavit-in- reply enclosing therewith a copy of the reasons r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the reason for reopening of assessment is a subsequent decision of the Supreme Court in the case of Madhya Pradesh Co-operative Bank Ltd. v. CIT [1996] 218 ITR 438 (SC). Attention was invited to a decision of this High Court in the case of CIT v. Bipin Vadilal [1999] 238 ITR 1022 (Guj), wherein it has been held that where the belief as to escapement of income chargeable to tax from assessment was not entertained by the Assessing Officer on the ground that there has been failure on the part of the assessee to disclose truly and fully all material facts necessary for the assessment, but on the basis of information contained in the judgment, no proceedings can be initiated under section 148 beyond the expiry of four years from the end of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax should have escaped assessment (i) by reason of failure on the part of the assessee to make return under section 139 of the Act, or (ii) there should be failure on the part of the assessee to make a return in response to the notice issued under sub-section (1) of section 142 or section 148, or (iii) to disclose fully and truly all material facts necessary for its assessment for the relevant assessment year. In the facts of the present case, it is an admitted position that there is no failure on the part of the assessee to make a return under section 139 or to make a return in response to the notice issued under sub-section (1) of section 142 or section 148. In so far as the third condition is concerned, namely, failure on the part of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tiated under section 148 after the expiry of a period of four years from the end of the relevant assessment year. In the circumstances, the initiation of reassessment proceedings in the case of the assessee for the assessment year under consideration is clearly barred by limitation and as such, the assumption of jurisdiction by the Assessing Officer itself is invalid. The impugned notice under section 148 of the Act, therefore, cannot be sustained. 8. For the foregoing reasons, the petition succeeds and is accordingly allowed. The impugned notice dated January 12, 2001, issued under section 148 of the Act (annexure A to the petition) is hereby quashed and set aside. Rule is made absolute accordingly with no order as to costs. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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